Wedbush Securities analyst Daniel Ives this week lowered his price target for Apple from $200 to $175, but maintained his firm’s “Outperform” rating and remains optimistic about the long-term for the stock.
Dylan Croll for Yahoo Finance:
“Tech is enemy number one on Wall Street. And Apple has a bullseye on its back, with fears around softening demand into 2023,” Ives told Yahoo Finance. But, as he said in the investors note: “We believe the overall demand environment is more resilient than the Street is anticipating.”
“Apple remains the laser focus of the tech bears as this name has held up much better than the rest of the beaten down tech sector over the past year,” Ives said.
But Ives is confident the company will see relatively strong demand going forward.
“While roughly 8 million to 10 million iPhone units got pushed out of the December quarter due to supply chain issues, that should be a benefit in the March quarter as we do not see this demand evaporating but rather moving into 2023,” Ives said in the investor’s note.
He also pointed to the company’s strong global installed base, which grew 9.9% year over year to just over 2 billion in 2022, according to S&P Global Market Intelligence.
“Our view is that it’s a Rock of Gibraltar stock that’s going to hold up better than the rest of tech, because of its installed base,” Ives told Yahoo Finance.
MacDailyNews Take: Yup.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
So how much do you think Daniel will make today in commissions kickbacks based on his “analysis”? And then Monday he can say they are in trouble, then Wednesday he can say they are the “Mount Everest of stocks…”, Friday the “San Andreas Fault”, etc.
I’m impressed that Apple can grow its user base by nearly 10% yoy. Combine that with the fact that Apple users tend to stick with the brand and it’s very encouraging for the future prospects.
Even the Rock of Gibraltor erodes over time. If investors no longer believe in Apple being a good company, then Apple stock will continue to stay weak in value. I haven’t sold one share of Apple for nearly two decades. In fact, I bought more shares as Apple dropped recently. I don’t have the fears that many so-called investors have. I don’t know what they’re doing with the money they’re getting from dumping their Apple stock. No stocks seem to be doing very well, so where are they moving that money to. For me, it’s a great time to hold and buy more shares and wait for Apple to recover. It’s not as though demand for Apple products has dropped drastically. It was just a slowdown in iPhone production and that situation has improved. Other shareholders selling Apple is good for me, so I’m not complaining. Hopefully, Apple was buying back shares when the price dropped which is even better for me.